The design of Bitcoin is closely related to gold which has led to the idea that Bitcoin has gold-like features such as being a store of value and a safe haven. However, given Bitcoin's extreme volatility investors may rather need a safe haven against Bitcoin. We hypothesize that stablecoin...
J. (2012). The destruction of a safe haven asset? Available at SSRN. https://doi.org/10.2139/ssrn.2142283 Article Google Scholar Baur, D. G., & Hoang, L. T. (2021). A crypto safe haven against Bitcoin. Finance Research Letters, 38, 101431. https://doi.org/10.1016/j.frl....
It is very obvious looking at the two charts and timing that Bitcoin is not a safe haven asset while gold continues to do well in that role. What about inflation? Is Bitcoin and Crypto a good inflation hedge? I am sorry, it has proven useless for that as well.Crypto has not b...
Cryptocurrency has sparked intense debate since Bitcoin’s inception in 2009, with proponents hailing it as the future of money and detractors warning of its volatility. In 2024, the crypto landscape continues to evolve, shaped by technological innovations, regulatory developments, and global ...
We further find that Bitcoin can be hedged against stocks, bonds and SHIBOR and is a safe haven when extreme price changes occur in the monetary market. Our findings provide useful information for investors and portfolio risk managers who have invested or hedged with Bitcoin. Keywords: Bitcoin, ...
year including trade policy uncertainty, geopolitical tensions and the coronavirus epidemic, among others. With investors around the world struggling to find safe haven assets to insure themselves against potential crises, it was anticipated that many wouldturnto Bitcoin (BTC) and other digital ...
Bitcoin, the most well-known cryptocurrency, paved the way for the cryptocurrency asset class. Now the cryptocurrency of choice, its meteoric rise was unlike any other commodity, resource or asset. Bitcoin’s price rose more than 1,200 percent from March
In crypto markets, investors are used to sharp price fluctuations. Crypto volatility is typically an order of magnitude greater than that of traditional asset classes like stocks. But the single day drop in Bitcoin's price was large, even by crypto standards. ...
A crypto safe haven against Bitcoin. Finance Research Letters 38: 101431. [Google Scholar] [CrossRef] Bloomberg Intelligence: “ESG May Surpass $41 Trillion Assets in 2022, But Not Without Challenges, Finds Bloomberg Intelligence”. 2023. Available online: https://www.bloomberg.com/company/press...
We find Bitcoin has two sources of value: as a medium of exchange and as a safe-haven currency. Numerical simulations and econometric analysis support the theoretical results. Bitcoin showed more pronounced characteristics of a safe-haven asset during COVID-19. 2. Related Work Our work explores...